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The Timber Producers Federation (TPF) says the sector needs to implement a 60 percent performance based wages and 40 percent guarantee pay system to match current production and sales. Chairman Joseph Kanyekanye said the industry needs to focus on formalising realistic wages which reflect the current economic status.
“Production levels are high but prices are low. We need realistic wage bills which sustain operations,” he said.
Kanyekanye said as local demand remains depressed, there is need to coordinate exports especially to the north. “Zambia pole orders have been helpful. These exports will continue to be a significant contributor to the industry’s survival,” he said.
Kanyekanye said the regional market has been competitive in the year to date as infrastructure development activities are happening in various regional countries.
“Exports have been the mainstay of the sector so far, and they consume over 60 percent of our timber,” he said.
He said Zimbabwe currently exports timber to South Africa, Botswana, Zambia, Kenya, Malawi and Namibia.
“Of these, it is Zambia which currently consumes the bulk of our timber as there are several infrastructure projects happening and their economy is showing a steadfast recovery,” he said.
He, on the other hand, noted that in Zimbabwe, the various housing projects that are being undertaken and those in the pipeline will, during the last quarter of the year, improve local demand.
“If these are successfully completed, demand for timber products especially roofing will increase.”
The industry is currently dominated by three major players who constitute about 95 percent of the country’s timber sector.
The major player is Allied Timbers with a share of 50 percent, Border Timbers at between 30-35 percent while the remaining is shared between the Wattle Company and others.
Kanyekanye said the sector is currently operating at around 50 percent and despite challenges the sector is facing, timber hectarage has increased to 83,000 ha from 81,000 ha.
Online Reporter